Many Economists Believe That the Most Harmful Consequence of Continuing

question 208

Essay

Many economists believe that the most harmful consequence of continuing to finance high budget deficits through borrowing is the upward pressure placed on interest rates.Explain this argument.(That is,explain why higher budget deficits may lead to higher interest rates and why this may be detrimental to the economy in the long run. )

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Definitions:

Gridlock

A situation in government where no progress is made due to the inability of the parties to reach a consensus or compromise, often resulting in legislative inaction.

Legislation

The process by which statutory laws are enacted by a legislative body through the proposal, debate, and voting on new bills.

Progressivism

A political and social movement advocating for reforms to address issues arising from industrialization, urbanization, and corruption, emphasizing improvements in social justice and the expansion of democracy.

Age Groups

Classifications of the population based on age, often used for demographic, marketing, or research purposes.